The legislator articulated the rationale for the amendment precisely: the decree sets out the implementing provisions necessary for statutory changes, introduces clarifications facilitating legal interpretation, and revises the rules governing data reporting obligations. Accordingly, the revised regulatory framework simultaneously tightens, clarifies, and reshapes key elements of the development tax allowance regime.
One of the most significant changes affects energy-related investments. Under the amended rules, investments falling within Section 35 of the TEÁOR’25 classification will no longer qualify for the development tax allowance. This exclusion applies even where the investment serves solely to meet the taxpayer’s own energy needs. In line with this approach, the acquisition cost of assets serving such purposes may no longer be treated as eligible costs. The legislation does not introduce a new prohibition in this respect, but rather clarifies that all activities related to Section 35 fall within the scope of the exclusion.
Investments aimed at the construction or acquisition of residential properties intended for market-based sale or lease are likewise excluded from the scope of the development tax allowance, further narrowing its applicability.
Another key element of the amendments is the substantial expansion of data reporting obligations. Going forward, taxpayers are required to provide information more frequently with more detail in relation to investments covered by the development tax allowance. In the corporate income tax return, investment-level disclosures must be made not only with respect to tax allowances actually claimed, but also in cases where the investment is ultimately not claimed, or the taxpayer elects not to apply the allowance. Furthermore, any change in the subject matter or location of the investment will require a new notification obligation.
Importantly, these stricter reporting requirements will already apply to the corporate income tax return for the 2025 tax year where the notification relating to the development tax allowance was submitted after 1 January 2017. Consequently, the amendments are relevant not only for new investments, but also for a significant number of ongoing or previously notified projects.
While the scope of the allowance is narrowed in certain areas, the legislator has introduced a new, standalone regulatory framework for investments aimed at ensuring manufacturing capacity for clean technologies. With effect from 1 January 2026, the Corporate Income Tax Act is supplemented by a new legal title for the development tax allowance, specifically designed to incentivize such investments. In line with the amendments to the Corporate Income Tax Act, the decree lays down detailed rules applicable to investments ensuring manufacturing capacity for clean technologies. As a general rule, the acquisition cost of tangible assets, as well as of rights with pecuniary value and intellectual property serving the purpose of the investment, qualifies as eligible expenditure. Furthermore, in the case of small and medium-sized enterprises even more beneficial tax allowances can be claimed.